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tv   After the Bell  FOX Business  December 10, 2013 4:00pm-5:01pm EST

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twitter with a new tool that allows for precise ad targeting. [closing bell ringing] david: they're cheering on wall street regardless. it is in middle of some bull market. charlie rose and some other folks pushing the button. cheryl: nasdaq, david. technology chairman ceo will be joining us. david: he is. so is the ceo of toll brothers. we'll hear what is the latest from the stock market. what i'm looking forward to, he is from the cftc he will talk specifically, been quite critical of the way the volcker rule has been rolled out but voted for it as member of the cftc as one of the commissioners. cheryl: always great to talk to bart. we have a lot of great guests coming up in the next hour. but we want to bring you the front page headlines. general motors promoted mary barra as first woman ceo of the automaker. dan akerson is leaving to take care of unfortunately his sick wife. david: regulators voted to
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endorse the new volcker rule that restricts banks proprietary trading. cftc commissioner bart chilton will join us a little later and how that rule will enforce something that nobody seems to understand. it is difficult to apply a law that people can't read. cheryl: bart always tells it like it is. lululemon, the big story today, is lower after the chairman announced he will step down. recall back in march, lulu had problems with yoga pants because they were quote, too sheer. david: outer wall says the president of redbox video rental kiosk unit is leaving the company. it is cutting% of its workforce. cheryl: david talked about it. toll brothers, largest homebuilder in the u.s. the stock is down. the company beat earnings estimates. ceo will be here later on in the show about the current quarter and the state of the housing market. david: president obama praised nelson mandela calling him quote, the last great liberator
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of the 20th century. the president and other leaders paid tribute to the former south african leader in a memorial service in johannesburg. we have a lot of guests you don't want to miss within the next hour. "after the bell" starts right now. cheryl: today's market reaction and action. we have tom karsten with us, karsten president and chief investment officer who thinks the market is headed for a pull back. jim awad, whose stock picks are up, go jim, up over 12% in the last two months. he is back with three more ways to play the market and larry shover in the pits of. larry, start with you. not a lot of volatility which was nice to see but we continue to wait on the fed or has that storyline passed and you're watching something else. >> a lot of thingswell. a jittery day with a lot million
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headlines and a ton of apparent reasons for every move in the stock market right now. right now we've seen a general uptick in hedging and risk off action. a lot might be the fed. some might be year-end squaring of positions. when it comes to tapering traders behind me are realizing it is not that big of an overhang. if it was we wouldn't see gold, treasurys and homebuilders do so well today. at the end of the day a lot of consolidation, a lot of confusion. david: people taking their eyes off the fed, looking at other things like new regulations. tom karsten, whole new group of banking regulations as part of the volcker rule. started out as something simple. typical of washington. it is a thousand pages a bunch of legal gobbledygook inside of the thing yet banking stocks didn't crash today. in fact some of them did very well. why is that? >> i think we really didn't sigh as much disruption today as many people were anticipating with the passing of that rule. i think a lot of investors were expecting that. that has been in the writing for
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a while. you know, we've got investors who still anticipate that while there will be a taper, we will likely have very low interest rates well into 2014 and as long as that's there, it is still a little bit of a party for stocks. really it is not causing as much disruption for investors as you might think. cheryl: jim awad, you think, you're still bullish on stocks overall for 2014 but there are two restrictive factors that you're concerned about right now. what are they? >> you've got tremendous speculation in the credit markets. almost as bad as 2007. there is a lot of low quality paper out there. i'm afraid some people may have gotten access to money that shouldn't have access to money and as credit conditions normalize and they may not be good for it and secondly you have to say valuations, the cheap day in the stock market is over and you're somewhere between fair valuation or a little bit over fair valuation. those are the two factors that keep me a little bit constrained. david: although, jim, two of
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your stock picks are business development organizations. >> yay. david: these are organization that is give out loan. kind of a mix between private equity organizations and banks, right? >> right. of course they're not without risk which is why you get an 8.5, 9% dividend. david: wow? you own these two too. >> for my clients and myself and family. what they do is it is very hard to get money from banks so this industry haa developed and grown up. they sit on top of the balance sheet. they helped money to medium-sized corporations, senior debt and variable rate. they are reasonably well-protected as long as the economy is expanding. if you believe the economy is still going to expand these sell at book value. the book value grows and yields 9%. they are prudent plays but you have to stay on top of them. cheryl: tom, talking of plays, you're actually looking at alternative investment space which honestly we've seen this bond outflow the last three months but we haven't seen equity inflow we should have
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seen. alternative invests, where's the money going? >> we think that will be a bigger trend going into 2014 because we have a lot of investors, a lot of our investors who are near retirement or in retirement. they need income in their portfolio. even with the generous return you've seen in the stock market this year, they need income-producing assets. alternatives by their nature, whether it is in real estate or oil and gas, are very much income oriented. we see those and investors are seeing them as replacement for bond in the portfolio moving forward. david: larry, let's talk about commodities for a second. we see this spike in oil. oil is very close to $100 a barrel. is that because, as a general agreement that the world economy is getting back on its feet or what? >> yeah, david, that's definitely part of it. another thing is positioning. traders are expecting this week's eia inventory is going to show two weeks of consecutive drawdowns. remember that super congestion story we talked about last week
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and week previous. we have pipelines, seaway xl starting to move a lot more oil than anyone expected. it will start to draw down faster and very furious to refineries. all of sudden we're going from glut to having not enough oil. it will cause the price to go up. you can also see the spread between brent and wti coming in quite significantly, about six points in the last two weeks because of that lack of congestion. cheryl: you know, tom, some of the stocks plays you're looking at are interesting is technology. technology and financials are two of the strongest sectors for 2013 performance. >> sure. cheryl: what is in technology, do you have any concerns about specific names or favorite name you can tell me about? >> you know in general i think that our concern is a lot of the momentum names, whether a google or facebook that has seen strong gains this year really don't have i think the staying power this next year to move forward. to jim's point. agree with his comments on
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evaluations, it is very difficult to find companies at attractive valuations right now if you're putting new money to work in the market. cheryl: tom you like cisco, don't you? >> we do. that is a perfect example, you're exactly right, cheryl of areas where we do see it. we think with a company like cisco you have a lower valuation, sustainable dividend they're paying out and really kind of a backbone of that sector we think should have some upward potential in 2014 as well. david: jim, we've seen some encouraging news about the economy. of course the jobs report, some other good news from the federal reserve, if the global economy starting here at home is beginning to grow again wouldn't you be making some kind of a play in commodities right now? >> i don't think underlying growth, i don't think anybody is forecasting underlying growth will be strong enough to restart the commodity cycle. it will be better than it has been the last couple years but there are enough restraining factors around the world, you don't want to bet on inflation, you don't want to bet on super
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growth. you want to bet on moderate and durability of growth. cheryl: jim, you like ge? >> i like ge as a huge long term margin play, plus the dividend and sickly benefit from recovery in the world economy. david: jim, by the way, apple, last time you were here, it is up 14% since then. that was two months ago. are you still with apple or did you sell it? >> i think it has another 10 or 15% to go in the holiday season. cheryl: really? >> i think when it gets there, that's the game. cheryl: jim awad, bold prediction, jim awad, tom karsten, thank you very much. larry shover as well. david: thanks, guys. the largest u.s. luxury homebuilders, toll brothers, really big here in the northeast beat wall street earnings forecast. we'll ask the company's ceo whether american consumers will keep up the pace of home purchases next year. cheryl: also gm's mary barra breaks the glass ceiling of the nation's largest automakers to become the company's first female ceo, first female auto
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ceo. we'll find out what it means for the entire u.s. auto industry and of course investors. david: that bring us to facebook question. with automakers -- with the government selling its stake in the automaker is it time for you to invest in gm? facebook.com/afterthebell. let us know. ♪ [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked?
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so we can ke better health decisions. that's health in numbers. unitedhealthcare. david: we have some breaking news on what's happening with the budget negotiations inside the beltway. of course a lot of questions about whether or not they will work out some kind of compromise but there are some people are worried that compromise might include increased spending and now the koch brothers weighed in on this as you might know koch industries is veried in governmental affairs. their spokesperson sent a letter to members of congress urging lawmakers to not abandon the cap they have on spending. it is about a trillion dollar cap. 967 billion-dollar cap on discretionary spending. a lot of people credit that cap with having brought down spending quite a bit as in relation to gdp. that has done a lot in terms of moving our economy forward. so the koch brothers demanding that that cap be kept no matter what the negotiations finally
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settle on inside the beltway, cheryl. cheryl: interesting on that breaking news from them. shares of lumber liquidators are getting crushed as disappointing guidance update. let's head back to nicole petallides on the floor of the new york stock exchange with more. nicole. >> we're watching lumber liquidators today and it sold off dramatically is a good way to say it. it is down over 13% today for lumber liquidators as they gave guidance below what people thought it would be, light guidance, giving credence to some people out there shorting it but you do have analysts say hold it, just hold it. they're switching over to some things costing them more in the wood realm and sales of hardwood and the like and that actually you do have piper jaffray analyst peter keith who is out defending the retailer and actually continues to hold an outperform overweight rating on this company. price target of $135. now year-to-date this year,
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lumber liquidators is up about 70% but you can see, it came under pressure today. back to you. david: nicole petallides, thank you very much. good to see you, nicole. cheryl: you know the name, toll brothers, the largest u.s. luxury homebuilder, has announced 2013 fourth quarter earnings that beat expectations. what trends are the company seeing in the high-end housing market? david: joining us toll brothers ceo, doug early. thanks for coming in. appreciate it. >> thank you. nice to be here. david: as we mentioned you guys deal with the high-end market particularly here in the northeast. i'm wondering as we're very aware of ticks in interest rates either up or down last couple months, mainly up, is your market immune to the moves in interest rates and how they affect mortgages? >> it is immune. our buy remembers able to put 4
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quite a bit down. our average loan-to-value is 33%. toll brothers house is tends to be second, third, fourth house in a family's life. so they have pretty good fico scores, credit ratings. they have investments in the market. so a little tick in interest rates is really not a factor in our business. it more goes to the consumer confidence, how they feel about their job, how they feel about the country and so we're much more in tuned with those numbers than the mortgage rates. 4 1/2% rate is a historically very low rate. david: oh, yeah. >> so for us, for us we're fine with that. cheryl: i think that is interesting, doug, about the quarter, about the fiscal fourth quarter results because, you know, earnings, if you compare to last year earnings actually sank and fiscal fourth quarter income number is down7%. so what is going on here? is this potentially an anomaly in this quarter? >> no. that was completely tax driven. we reverse ad deferred tax asset last year.
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our pretax income is actually up 150%. and the market has recognized that. that is just a headline you're talking about. it is no reflection on our business. we're actually way up over 2012. david: bob schiller, the smart nobel prize-winning economist who focuses so much on real estate has expressed worries. he is not convinced this is happening but expressed some concern whether there is another bubble in the real estate market but also the stock market. but in real estate specifically, have you seen any signs of that at all? i mean you're able to track who your buyers are, what their interests are. you mentioned people, second, third, fourth homebuyers. but do you see any bubble at all in the market? >> no. remember when the bubble hit this country was building two million new homes a year. every blackjack dealer in las vegas was buying three houses. mortgage underwriting was way too easy. today we're at 900,000 new homes per year. we're way below the historic
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average of 1.5 million new homes. mortgage underwriting is extremely difficult and the builders are not building speck inventory. we're a long way from a bubble. cheryl: one of the things we'll see of course, doug, when we do get tapering from the fed. the plan we all assume will be for interest rates to tick up a little bit. you said a couple moments ago you don't think your customers are interest rate sensitive but depending on the jump in rates if we go back to god forbid, 6%, would that have an effect on high income consumer you're servicing? >> it would certainly at some point have an effect. as rates go up that increases activity because people want to get in. we've seen that cycle after cycle. the key that the rates go up slowly so the market can absorb them. back in late may rates went from 3 1/2 to 4.57 in a matter of a couple of weeks and that did sent send a bit of a shock in
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the market. i will take a 5% rate any day in a better economy. cheryl: you don't think they have already gotten in? that's what we've seen. the housing market yourself last two years, your industry has gone gangbusters. you don't think those purchases have already been made? >> oh, no, the pent-up demand is still growing. we've been producing between 700 and 900,000 new homes per year over the last couple years and the average per year for the last three decade is 1.5 million homes. so while our industry was up significantly, over the horrific years of 9 and 10, we're nowhere near close where we should be. there is a lot of pent-up demand that is still growing and there is a lot of room to grow and many, many buyers have not gotten in. so i'm not worried about a small tick in rates. i think we'll be fine. david: it is great so many people buying are doing a lot with cash. you say 30 to 35% cash. i've heard in areas of florida
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people are like, 50% cash in a lot of those areas of florida but is there a concern there? that is, are banks holding back too much in loaning out right now? >> well, banks have been very conservative. they were hurt badly in 05, 06, and the federal government stepped in and made the underwriting for mortgages difficult. it is in our food chain so it affects the first-time buyer, the second-time buyer who does have a home to sell to move up to our house but when we have 20% of our buyers that are 100% cash purchases and those that get a mortgage at average lpv of 67%, we're in great shape. david: by the way, what percent of those who pay 100% are foreign as opposed to domestic? >> it is market by market. it's a small overall number but when you looked at northern california or parts of texas or new york city high-rise, it's a much more significant number. cheryl: you just bought chapel industries and that is actually california but 5,000 lots.
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can't wait to see what you do with that group of lots. doug early -- sorry. >> thank you very much. cheryl: thanks, doug. david: thank you, doug. appreciate it. cheryl: yeah. general motors is getting a new ceo and she is the first woman to lead a major automaker. could it be the beginning of a new era for the u.s. auto industry now that the government bailout is in the rear view mirror? we'll talk about it. david: after regulators vote in favor of the volcker rule we'll ask cftc commissioner bart chilton how will they enforce a law that only the lawyers seem to understand. he is our guest in just a moment. ♪ my mantra? family first.
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david: time for a quick speed read of some of the day's other headlines, five stories inment first up just two months after its release sales of samsung galaxy note s 3 beaten million. they beat sales of those preceding versions. apple may be ready to build curved screen products you may have heard about. they are looking to manufacture a higher quality curved touch sensor. supposedly eliminate problems found with other techniques. david cheesewright president and ceo of walmart international. last year walmart generated $135 billion in revenue from its international business segment, equal to 29% of its total sales. her said topped audi for first time to assume the title
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of the world's second largest luxury brand. bmw is still number un. google will let users create customized street view experience. they can add photos and put them together to create a personalized location map. won't that be fun. that is today's "speed read." [buzzer] cheryl: you never miss speed read. david: they give me extra time. cheryl: mary barra will replace dan akerson in january. david: she is been there a long time. she is a 33-year veteran. she is first female ceo after major auto company. you must know her, jeff? >> even a year-and-a-half ago i didn't ask her, i had dinwer dan akerson, i said, mary, oh, the hl woman. no offense of hr, they have a
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rapid rise, because they are very good with people. no, no, she started as electrical engineer. she has run plants. i looked at it a bit more. she has in fact got a resume' and background that is pretty amazing. look at freshest pictures from gm behind the scenes this morning at a town hall meeting when dan akerson presented for the first time, mary bar remarks first female ceo in auto industry worldwide history to the troops of the listen. >> we've made so much progress and we've come so far because we played well as a team. we don't have a personality here and what we do have is the nucleus of a great team sitting before you today and, with that i would like to introduce your new ceo effective next month on the 15th, mary. [applause] >> also behind her on the stage there, the new president. that is a newly-created position. they haven't had a president since i think 2003.
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he is dan ammon, former cfo. currently the cfo will become the new president and clear number two to mary barra. mark royce, our friend in the running he moves up spot and takes mary barra's position which is product development which he knows a heck of a lot about. wall street as you pointed out down about a percent today on the gm stock. if you look at the for the last year, up 60% over the course of the past year and i'll tell you, one, you know, 1% down today i think that pretty much is just a, is wall street endorsing as much as anything else this, you know, this appointment and i things look good for gm right at the moment. david: by the way, jeff, during your hit, you got a call from hr department. they would like you to call them back here at fox if you don't mind. >> yes. on a previous job i knew the hr department very well. so i'm trying to steer clear of those people here at fox till
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retirement. david: jeff flock, thank you very much. cheryl: thank you, jeff. david: breaking down the volcker vote we asked cftc commissioner bart chilton what the new rule could mean for wall street trading rooms. whether or not it could eventually hit banks profits. cheryl: business travel is poised to take off in 2014. we'll talk to the ceo of concord technologies in a first on fox business interview. you saw him ringing the nasdaq bell. he will tell us why a travel boost means big bucks for his business. ♪
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cheryl: time for a look at today's market drivers. the markets snapped their two-day winning streak as investors look for signs of the fed beginning to slow its bond-buying program. eight out of 10 sep sectors ended in the red with utility being worst performer. oil climbing 1.2% to go to total of 98.51 a barrel. we'll get inventories tomorrow morn. gold closing at three-week on speculation when the fed will taper. gold rose 2.2%. to settle at $1261 an ounce. david. david: david: regulators approved the final version of the volcker rule today but how can the
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government enforce a banking rule that nobody seems to understand? let's ask the country's one of the truly great regulators, cftc commissioner bart chilton who hopefully understands this thing. you know what the definition after cam met is, don't you? >> right. david: a horse put together by a committee. when i go through a this thing i see a camel not a horse. >> i there are meat on the bones. there are still a few gray areases and pieces gone into the camel as it were. we're very clear on a few important things. volcker was designed to ban proprietary trading. >> right. >> that is trading for the horse and we have done that we've been very clear bit in a number of records because ever recent changes. david: hold on just one second. there are all these exemptions. whenever i see the name exemption i think of lawyers, or i think of lobbyists. i know they got their digs in but you've got exemptions for market-making related
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activities, mitigated hedging, trading in certain government obligations, certain trading activities in foreign bank entities other permitted activities of the you have a whole list of exemptions. that usually means a shake by law, does it not. >> yes in general it does, dave. it doesn't in this regard. we don't have time to get into all of them, but for example, on market making they're permitted under the law to do market making but only when it benefits their customers. so that the caveat there. on hedging, they can't hedge, they coon only hedge the proprietary risk. they can't speculate. we require a correlation analysis. that is, what is the risk and then what is the hedge. they need to be similar. you can't say, i'm going to take a big flyer bet and this is my risk. it has got to be correlated. and we've done that on a number of things. so even though it may seem like there's exemptions here, there, and everywhere, i think it is actually fairly tightly drafted and it is in, keeping step with
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the law. david: all right. it is not just me that is a little skeptical as you well know. there was one dissenter, republican in the cftc dissented. and financial committee chairman republican jeb hensarling, three years and 11,000 comment letters, we're left with one more incomprehensible washington regulation weighing in at nearly a thousand pages that will do nothing to help the nation recover from the slowest, weakest, non-recovery since the great depegs. obviously there are politics involved in these statements however, however, there are a lot of small banking institution that is simply can't afford to do all the checking and double-checking and triple checking this law requires them to do, right? >> there may be some that need a little bit of help but let me make two points. first of all this isn't designed, the volcker rule to get our economy back on track. the volcker rule is designed to
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avoid another economic collapse like we saw in 2008. so that is the mandate. david: but couldn't you, couldn't you do that in a very simple way, bart? if you don't mind, i mean i'm, i'm not self-centered but i have the asman rule here. let me put it to you. one sentence. no commas in that sense. banks should be banned from gambling with money that is insured by taxpayers. isn't that all you need? >> dave, i would vote for it. let's get you down here. you can be a government regulator. david: but just one sentence. didn't take a thousand pages. >> don't get me wrong, i'm not saying it is not way too long but some of these things are fairly complex because you do want to allow certain types of market making. you do want them to be able to hedge their proprietary risk. it is these gambles that have put our economy in peril over the years that we've tried to avoid. david: agree. >> could it be done in a more simplistic fashion? we need to you help us,
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absolutely. david: i don't mind anybody gambling. i'm libertarian as far as gambling but i don't want them gambling with my money and that's the problem. frankly it gets back to the original glass-steagall bill from the depression era which separated financial institutions from banks. the banks that do have government taxpayer guaranteed money in it, you couldn't gamble with that but you could if you have a financial institution. why not just go back to glass-steagall? >> david, you and i have a mind meld on this thing, buddy. i'm there, i'm with you. this really does pull it back closer to glass-steagall and that is one of the reasons that i like it but i agree with the simplicity and i agree with the overall goal that you're stating. david: there was one time at which, and i tried to find a quote, i couldn't, where paul volcker was asked, you know, did he like what this was turning into, a law or regulation named after him and he said it was more complex that he could figure out. do you know what paul volcker thinks of the final rule? >> i haven't heard from the chairman but i heard from a lot
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of people today, consumer organization, some end-users like some of the big energy companies and they all think it's a good thing. they think by and large we've done a good job even though as you say it is complex, it is lengthy but overall they believe that we're kept with the intent of the law and it will avoid the potential calamity that we saw in 2008. david: well, bart, my very simper, one sentence, you're more than welcome to use that if there is a third revision of this rule. you don't have to say the asman rule, you can call it the chilton rule if you like. we want simplicity in our law making process. that is the bottom line. got to leave it at that. wonderful to see you. come back to see us soon. >> appreciate it. david: dave. david: bart chilton, cftc commissioner who today voted in favor of the volcker rule. cheryl, over to you. cheryl: david, business travel is actually booming. coming up in a first on fox business interview we'll talk to the ceo of concord technologies. if you filled out, lucky you, a
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travel expense report recently because they're so much fun you will concur. this is a company that is actually poised to reap benefits of that travel boom. and also speaking of travel, it's a battle for boeing. we'll take a look how states are competing to woo the company to build a new production facility. the incentives? huge. "after the bell" will be right back. ♪ [ male announcer ] here's a question for you:
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♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on t right track. the power tools iroduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy. so i deserve a small business credit card with amazing rewards. with the spark cascard from capital one, i get 2% cash back on ery purchase, every day. i break my back around here. finally soone's recognizing me with unlimited rewards! meetings start at 11, cindy. [ malennouncer get the spark business card from capital one. choose 2% cash back or double miles on every purchase, every d. what's in your wallet? i need your timesheets, larry! [ engine revs ]
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♪ ♪ [ male announcer ] the mercedes-benz winter event s back, with the perfe vehicle that's just right for you, no matter which list you're [ santa ] ho, ho, ho, ho! [ male announcer ] get the all-new 2014 cla250 starting at just $29,900. david: the global business travel association predicts worldwide spending on business travel, get this, it is going to hit more than a trillion dollars this year all over the globe. cheryl: a lot of travel. this company is keeping track of rising travel expenses is. joining us in a first on fox business interview, chairman and ceo of travel and expense travel firm. thank you for being here. you were on the show a year ago.
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you had 15,000 client. now 20,000 clients. >> that's right. cheryl: where is the boom coming from? >> we're seeing growth everywhere. in large enterprises we added wonderful new clients like intel and we're seeing our sb customer base grow. cheryl: small business. >> 50% growth year-over-year in small businesses and medium-sized businesses. david: before we went on live, we talked about how much we hated doing is business. most people like to travel. we don't like to travel because we don't like to dot expenses. we do not, i should mention use your services, concur. >> i could solve that for you. david: the fact if it ace relatively easy thing to figure it out and fix why aren't other people doing it? why aren't you the only one? >> we've taken approach that we ought to get rid of the against report entirely. wouldn't it be nice if the expense report filled out for you? david: sure would. >> our clients are taking
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booking tool and trip it product to manage the in trip experience. we'll pull the hotel receipt, pull the airline receipt and taxi ground transportation receipt and put it into your expense report. cheryl: i love that that is my issue with this. >> this is why clients are driving to automate the process. cheryl: talk about the competition. you have big-name competition. you have oracle. you have saps yet you're seeing the critical growth past year. >> we have competition but we're by far the market leader in the space. the vision we have the perfect trip creating a travel experience that could be pleasant and not something you dread we're setting the agenda in this marketplace. we're investing more than anyone else in the marketplace and customers and suppliers say concur is the right choice and that is what is driving business. david: you've been in the business for a while now, 20 years, right? >> right. david: last year you were problems with losses because of operating expenses. apparently you have a lot of them under control now. what did you do? >> you know a lot of it is
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actually non-cash operating expensess david: like what for example? >> stock based compensation is impact to our gaap earnings. also we take a, this is a little technical but we also take effectively a charge for what would be interest rates because we did a convertible debt issuance. reality a lot of things that impact our gaap losses are non-cash based items. on pro form ma basis -- david: is that behind you now? have you straightened that out? >> in reality for years to come we'll be company that invests very aggressively in the business and pro-forma operations should be 10 plus percent range in the near future. cheryl: jobs a big problem. you doubled workforce. will you continue to hire next year. >> we'll continue to hire. we have more open headcount to than we can fill. cheryl: you're not finding people to fill jobs. >> reality in our country we need to double down on basically stem education so -- cheryl: science technology --
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>> greater and greater workforce that really fantastic-paying jobs. david: you guys are great barometers for what is happening in the country, how healthy the economy is because people don't travel if they're cutting back on expenses. >> absolutely. david: what is your sense now? have we turn ad corner in the states? >> i think so. reality travel will move up in 2 to 3% kind of range going forward. it's a healthy variety. david: you see any pullbacks in places like bra sir, for example? like brazil is kind of calming down a little bit after its boom for the last couple years? >> we see pockets of world starting to see less growth. but they're still growing. that is the important pie fundamentally economies around the world are relatively stable and they're growing, not at the rates we would love to see but they're growing. innovative companies are growing faster. cheryl: you read about skype and face time and videoconferencing calls again, another business that oracle is in as well as competing against you. does that concern you at all? >> i don't think so. think about this. reality what it does it actually makes your day more efficient so
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you can get more work done and frankly end up doing more travel. go back to email. email was supposed to wipe out paper. you look at your own desk. reality is that paper continues to proliferate. cheryl: talk about all the paper on my desk. david: steve singh, great to see you. congratulations, condition occur technologies. -- concur technologies. maybe we can work something out. cheryl: i know, i.t. department. it's a beauty contest with a difference. boeing is planning on competition with different states where thousands of jobs and billions of dollars are at stake. details are coming up next. david: you may wonder why harvard medical students took a break from the studies to produce this viral video. we'll tell you what is behind the dance moves. do you see any danceing? you will later on when we show more of the video. that is on "off the desk." ♪
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cheryl: boeing is getting showered with offers of tax breaks in a battle between states for new production facility for the company's new triple 7-x passenger plane. david: any state that wants to do that for me i'm open for
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bidding. liz macdonald is joining us with details of the boeing plan. go ahead, liz. >> we're tracking this developing story. we're counting about a dozen states could be in the running to give tax breaks to boeing and it is a big deal. we're talking about facilities, 41 million square feet at a cost of $10 billion. 12,000 jobs directly tied to the facilities alone. some say potentially estimates have it a at nearly 60,000 jobs when you talk about restaurants and hotels and services that could pop up around the plant. so in the running right now we're seeing, get this, washington state, $8.7 billion over 16 years. that's a whopper. that's the biggest state tax break to state that we've seen offered to any industrial company. -@remember alcoa back in 2007 gt a sweet deal from new york state that was just about five billion bucks over 30 years. this is 8.7 billion bucks in tax breaks over 16 years for boeing. boeing is saying it will announce where it is going to build next tuesday.
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so that tuesday deadline is coming up next week. we'll track this developing story. i'll tell you a dozen states vying for this. we haven't seen a fight like this terms of giving tax breaks to company like boeing in a very long time. send it back to you guys. david: i never heard of $8.7 billion -- liz, you've been looking attacks for years now. have you heard of one that big? >> no. it's a whopper and over 16 years and start in 2024. it's a big one to date. that is the biggest one we've seen so far. david: $8.7 billion tax break. cheryl: washington has a union issue they have a problem with the engineers. david: i take one 10th of that. you don't have to be on the cell phone or the web to have the government tack you down. the government is developing a spy in the sky to watch the earth. you have to see this to believe it. its scary stuff details coming up. >> general motors names the first female ceo of a auto giant and the federal government sold
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its remaining stake in the company. we ask you on facebook and twitter is it time to invest in general motors? we'll read your comments coming up next. ♪ every day we're working to be an even better company -
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>> let's go "off the desk." harvard medical school is ranked number one in the country in medical research according to
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"u.s. news & world report." there is more reasons to attend the prestigious institution. a group of students took to the internet to spread awareness about human anatomy, with a music video parody of the viral hit, the fox. they address the question that no one seems to know what the answer too, what does the spleen do? filters once. david: they're pretty guidancers. also "off the desk," by the way, listen for government agency, defense advanced research project agency, the acronym is darpa. they develop ad next generation satellite capable of observing who% of the earth's surface at one time. the moore satellite will be able to produce high resolution images real time infrom anywhere on the planet. the satellite will be 20 feet in diameter at launch but once in
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orbit it will be 6feet when deployed. the prototype is successfully tested. if you think the government is watching before, just wait. >> with 68 feet of satellite in the air. we asked you on facebook and twitter with gm naming the company's first female ceo and the government also selling the stake in the automaker is it time to invest in general motors? jim on facebook, i lost a lot of on gm. when they went bankrupt. fool me once shame on them. fool me twice shame on me. david: good advice to live by. number one thing to watch, hilton worldwide holdings ipo the company's shares will begin trading on the new york stock exchange under the symbol hlt. hilton could be the second largest ip off of the year if it raises the maximum 2.7 billion at the high-end of its proposed price range. according to the filing the company could sell as many as 130 million shares at 18 to $21 a share. >> hilton was public. then they went private.
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now they're going back public again. david: with this market, can you blame them? everybody wants to take advantage of this market. by the way they don't have a particular price. that they will settle at tomorrow. >> we'll keep you posted. "money" with melissa francis now. melissa: it is day two of robot week and this little guy works in four different schools as a teacher's aide. is the idea losing your job to one of these may not be so farfetched but what is the cost? even when they say it's not it is always about money . melissa: first tonight, the ongoing wage rage. advocates of a higher minimum wage like framing this as a fight between greedy, heartless corporations versus impoverished overworked employees but one person who actually worked a number of these very jobs says, the workers aren't worth more money.

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